Is it possible to provide false information when registering with a broker?
Every day the blog receives many letters with questions, and these questions relate not only to trading, but also to organizational aspects.
We will try to answer the most frequently encountered ones on the pages of the site.
Lately, visitors have often asked: Is it possible to provide false information when registering with a broker?
It is difficult to understand why they need this; perhaps some newcomers are afraid for the confidentiality of their data or do not want to be called with unnecessary questions.
But we will not find out the reasons that prompted such a desire, but will try to answer this question.
Trader or analyst?
At first, all newcomers who come to the exchange think that the main character here is the trader.
Well, how exactly is a trader concluding profitable transactions, everyone sees his work and it is he who is interviewed by financial publications.
In fact, there are quite a few traders who independently make decisions about new transactions.
To be more precise, they make decisions on opening positions independently, but on the basis of data provided by the analyst. What is the difference between these two specialties, and who is actually more important in stock trading?
A trader Wikipedia interprets it - is a person who trades on his own initiative and tries to make a profit on speculative transactions.
How to disable leverage
Forex trading has gained popularity precisely because of the presence of leverage, which makes it possible to use the broker's money when opening transactions.
But margin trading has both positive and negative sides; an increase in the volume of positions leads to a proportional increase in profits in successful transactions or losses in unsuccessful ones.
High leverage is the main reason for large drawdowns or even loss of deposits.
That’s why many newcomers ask such an interesting question – “How to disable leverage” and thereby reduce the risk of possible losses?
That is, these investors want to trade exclusively with their own money, when the financial result is proportional to the deposit and does not increase due to leverage.
Is a stop loss always necessary?
It just so happens that some Forex traders do not really like to place a safety stop loss order.
There are many reasons for this, but the main one is the awareness that the transaction may be closed at a loss, and the price will again move in the direction of the closed order.
That is, the price forecast was correct, it’s just that the correction turned out to be slightly larger than the value of the set stop loss .
In addition, it is also difficult to calculate the value of a stop order and find the point for its installation, because in this case a lot of parameters should be taken into account.
Therefore, many traders ask the question: Is a stop loss always necessary when trading Forex?
Where can I find out the exact spread size?
The size of the spread matters if you are trading using strategies that involve opening a large number of orders.
Or if your trading uses large leverage, because in addition to the volume of opened transactions, it also increases the size of the broker’s commission.
There are also assets for which the size of the spread between different brokers can differ several times, for example, cryptocurrencies or precious metals.
Therefore, it will never be superfluous to know in advance what size of the spread you will have to pay when opening a transaction on a particular asset.
A trader has several options to determine this indicator and then take the resulting value into account when opening trades.
Interest rates and forex.
In any country there is a concept like an interest rate, it is used in relation to the national currency and plays a rather important role
in economics and finance.
Interest rate is the amount of funds in percentage terms that the borrower must pay for using loan funds.
The most important is the discount rate, which is set by national banks that control the financial system and ensure the stability of the exchange rate of national currency units.
It is the latter that is of great importance when trading; the influence of the discount rate affects two areas:
Everything about Forex orders - main types, sizes and triggering features
Forex orders are the main instrument with which operations are carried out on the foreign exchange market; there are several types of orders, all of them are grouped by execution time and type.
Each performs its own functions and is triggered only when certain rules are met.
The main task of the trader is to correctly determine the time of use of a particular order and set the initial parameters.
In addition, there is a certain category of orders that do not open transactions on their own, but serve only as an addition to already open positions.
Proper use of all available options can significantly increase the efficiency of Forex trading.
Why Forex forecasts don't always come true
At the moment, there are a lot of sites that provide detailed forecasts on the movement of exchange rates, prices for precious metals, energy resources, etc.
It would seem that now there is nothing easier than trading on the stock exchange; just read the current forecast for the selected asset and open a deal in the right direction.
And then wait for the analyst’s message about an imminent price reversal and close the deal with a profit.
But in practice, everything turns out to be completely not so rosy; more than 30% of forecasts are not forgotten or do not come true to the extent expected.
As a result, instead of the promised profit, the trader suffers losses and accuses analysts and analytical companies of some kind of conspiracy against ordinary market players.
What is the difference between technical analysis and fundamental analysis?
Anyone who comes to Forex is faced with the fact that he needs to choose which of the technical or fundamental analyzes to use in his trading.
Most analysts advise combining these two types of analysis, but in reality traders prefer to choose one of the market research methods.
At the same time, the essence of the question is not even which option is better or worse, you just need to know how different methods of analysis differ from each other, only this will allow you to decide on the right choice.
Therefore, we will try to analyze the main differences between technical and fundamental analysis and the features of their application.
But first you should find out what each of these methods is.
Differences between MetaTrader 4 and 5.
At the moment, the most popular trading platform is the MetaTrader terminal, but some traders find themselves at a dead end because
there are two versions of this program 4 and 5, which one should you choose?
What is the difference between these two options and are there any advantages to the newer version?
To be objective, first of all, it should be noted that MetaTrader 5 has not gained the same popularity as the fourth version; brokers offer it for download less often.
And the number of auxiliary scripts for working in MT5 is much smaller, let’s move on to an overview of the main differences:
What can you get from a broker absolutely free?
It has already happened that a beginner’s entire acquaintance with a broker ends at the stage of registration and opening an account.
A novice trader, after choosing a company and replenishing the deposit, immediately rushes to open transactions without even imagining how many useful things can be found on the broker’s website.
Moreover, there are many things that you often have to pay for, but here they are provided absolutely free for clients with a normal deposit.
Therefore, after you have chosen a broker and completed all the necessary steps to register and verify your account, it is never a bad idea to study the company’s website.
As a result, you may discover the following benefits:
Pros and cons of advisors when trading forex
An advisor or trading robot is a script that independently opens exchange transactions based on the algorithm embedded in it.
The emergence of such scripts revolutionized trading; these programs allowed many hedge funds to earn billions of dollars.
The main thing that attracts traders to use advisors in their trading is the opportunity to earn money without having deep knowledge of stock trading.
After all, to make a profit you just need to download the advisor you like and install the program in your trading platform.
What lies behind the ease of use and the promised thousands of profits? Is everything so simple and what are the pros and cons of such robots?
Why does someone make money on Forex and someone loses?
Currently, hundreds of thousands of people are engaged in stock trading; thanks to the Internet, the number of people wishing to become a trader has increased hundreds of times.
At the same time, not everyone succeeds as they would like; most of the beginners lose their money and only a few remain trading.
As has been said more than once, official statistics are not reassuring and call 5 to 15 percent of investors successful.
According to my personal observation, this figure is even smaller and amounts to no more than 3%, that is, out of 100 beginners, only three trade profitably.
Why does someone manage to become a trader and have a stable income, while others leave the market disappointed and without money?
Determination and calculation of forex collateral
Forex Margin is the amount of funds that the brokerage firm freezes when opening an order; it is usually written as “Funds on Collateral” in your trader’s trading terminal.
This implies that this amount is used to secure the transaction; you cannot use it in trading or withdraw it from the dealing desk.
The peculiarity of using this moment is that even if you open a transaction of the maximum available volume relative to the amount of your deposit, you will still have free funds.
For which one or more transactions can be opened will all depend on the remaining amount.
Acceleration of a small deposit, large profits with minimal risk
The topic of deposit acceleration is quite popular among Forex traders; sometimes this technique is used in other markets.
In short, deposit acceleration is a risky tactic using high leverage.
Its essence lies in the fact that the trader opens a large number of short-term transactions, earning only a couple of points from each.
This is due to the fact that huge leverage simply does not allow you to hold an existing position for a long time, and losses quickly destroy the deposit.
This trading option has many advantages and even more disadvantages, so some are an ardent supporter of accelerating the deposit, while others do not recognize its use at all.
How to buy and sell oil on Forex.
The fall in oil prices has attracted the attention of quite a large number of people who are not always familiar with stock trading and do not
suspect that one can make good money from this process.
How to buy and sell oil on Forex?
This is the question most often asked by site visitors. The question itself is not asked entirely correctly, you cannot trade oil on Forex, it is a currency exchange, but for trading you can use a standard trader’s terminal, which, in addition to currencies, contains such trading instruments as metals, raw materials and indices.
That is, in order to buy and sell oil on the stock exchange, you don’t need to invent a wheel at all, just follow a few simple steps:
Why I choose intraday trading
Surprisingly, it is intraday trading that ranks first in terms of volume among other operations.
It is intraday trading that is most popular among most traders who trade Forex.
The share of short-term transactions is several times higher than the indicators of transactions whose duration is more than one day, but this is not surprising because it is in short-term transactions that the maximum leverage is used.
I am also no exception to the majority and a significant portion of my transactions on the stock exchange are short-term transactions that are closed by the end of the day.
What is the reason for this choice and why is this particular trading option considered more profitable?
Short-term trading or long-term investment
All people who come to the stock exchange have the same desires and different opportunities, therefore the methods of earning money should also be different.
Some people start their journey as a trader with only a hundred dollars in their pocket, while others want to increase their fortune to several million.
Depending on the amount of initial capital, you should choose your main earnings strategy, since otherwise the risks are simply not commensurate.
Currently, all exchange trading can be divided into two parts - trading and investment.
Trading - you constantly open new transactions, monitor trends, and develop strategies.
Investments - at the initial stage, you select the most promising asset, purchase it and then only monitor further price changes.
How to choose the best metatrader 4 indicator for forex trading?
Tools such as indicators of technical analysis of the Forex market have found their use quite a long time ago.
For more than twenty years they have been successfully used to analyze various markets or as a basis for creating advisors.
It is not surprising that over such a long period, a simply huge amount of these indicators was created.
On the one hand, this is good, since you can find a tool that meets the requirements of the most demanding user, but on the other hand, there is the problem of choosing from thousands of existing ones.
How to find the most effective of them, at the same time having simple settings that a novice trader can understand?
“Do not offer jobs in Forex” or why people are afraid of this word
Over time, it is amazing to observe how a person’s opinion and his judgments about certain things change.
Most people were glad about the arrival of capitalism in the territory of the former Soviet Union, and assumed that they would take a more attractive place in the new society.
But practically nothing has changed, the janitor remained a janitor, and the employee was an employee and people again wanted to live under socialism.
The same metamorphosis occurred with the attitude of our citizens towards engaging in stock trading, and Forex in particular.
At first, the emergence of the opportunity to trade on the stock exchange aroused keen interest among those who wanted to earn a lot and quickly, but as it turned out, this activity is easy only in films.
Is it worth reading old books about the stock market?
Like any learning process, learning the basics of stock trading is simply inconceivable without reading books about trading .
Yes, something useful can be gleaned from a huge number of articles on countless websites about Forex, but printed or electronic books still remain one of the main sources of information.
Their main advantage is that it is always clear who wrote the content and how much you can trust it.
Many of the works were written by truly outstanding traders or analysts who have many years of experience on the stock exchange.
But at the same time, some of the readers ask the question “How relevant is everything that was written many years ago?”, After all, most of the books were created decades ago.
Why is trading cryptocurrency with a broker better than trading cryptocurrency on an exchange?
The cryptocurrency space is currently extremely popular. News that Bitcoin (or another digital currency) has reached another milestone comes not only from the Internet. Even television program hosts report this.
And the desire of traders who already have some understanding of the foreign exchange markets to join this type of earnings is understandable.
After all, in fact, trading cryptocurrency using an algorithm is not very different from, for example, Eurobucks or oil.
And at the same time, the question logically arises: where to trade cryptocurrencies?
Will we remain regular and loyal clients of brokerage companies or will we still turn our attention to specialized exchanges specifically created for trading digital money?
Technical Analysis for Beginners Made Easy
To find the direction of transactions in the foreign exchange or stock market, two types of analysis are used - technical and fundamental.
And if at first glance trading based on news seems as simple as possible, difficulties always arise with the use of technical analysis.
But the reason for these difficulties is that a novice trader immediately faces the most complex methods of technical analysis.
Which require lengthy study, and in practice are not always effective.
Technical analysis for novice traders involves the use of simple techniques with which you can quickly assess the current state of the market.
How many currency pairs to use when trading Forex
The main objects of Forex trading are currency and crypto currency pairs; at the moment, up to 50 such assets are available in the trader’s terminal.
Therefore, the trader experiences difficulties in choosing a currency pair, but even after making a choice, he asks the question - How many currency pairs should he use in his trading?
Some advise focusing on only one pair, others even recommend paying more attention to the situation on the market, and not to the object of trade.
We will try to find a middle ground in this matter and, thanks to this, achieve work efficiency.
To begin with, it should be clarified that we are not talking about the number of simultaneously open transactions on different assets, but whether it is worth focusing on one currency or making several assets work at once.
Can you trust a robo-advisor in Forex?
Trading robots are no longer news to anyone. They appeared in trading a long time ago, and during their existence they acquired a double reputation.
On the one hand, experts note an increase in demand for robot assistants.
Thus, according to experts, the size of investments that will be managed by special programs in the coming years will increase more than 10 times, and will reach $8.3 trillion.
At the same time, distrust of robot advisors is growing, and for good reason.
There are already precedents when, due to the fault of programs, companies suffered multimillion-dollar losses; failures in their work even caused trading stops on stock exchanges.
So, let's figure out how such automatic systems work and whether they can be trusted.
Is it possible to hack a trader's account?
Exchange trading is full of dangers, but in addition to the risk of unfavorable changes in exchange rates, other troubles may await the trader.
One of which is hacking an account and stealing money stored on deposit by transferring it to someone else’s account or payment system wallet.
Such troubles, although they do not happen often, do happen and it is better to try to avoid them, especially since they are quite easy to do.
It is enough to follow a few important Internet safety rules, which we will discuss below.
The main options for hacking accounts:
• Stealing passwords from your personal account is one of the easiest ways to gain access to your account, and if it does not provide additional protection.
Popular Forex strategies
There are two types of novice traders: the first, having entered the stock exchange, tries to find or create an exclusive and extremely profitable earnings strategy, the second is simply the most popular.
Moreover, the second category is on a more correct path; why reinvent the wheel if it has already been invented a long time ago.
It is much easier to trade like the majority, earn stable profits and not waste time looking for tricky solutions.
And in most cases, this approach turns out to be correct; the main thing is to strictly follow the basic rules for applying a particular strategy.
What strategies are the most popular in Forex at the moment?
As one would expect, the greatest demand is for trading options that are easy to implement and bring greater profits.
What is the difference between locking and hedging?
Most novice traders mistakenly believe that locking and hedging open positions are no different.
In fact, these techniques have an identical purpose - risk diversification, but the methods for achieving the task are fundamentally different.
What is hedging and how to use it?
Hedging involves opening two or more trading positions on assets with a zero correlation coefficient, that is, the pricing of these financial instruments does not depend on each other.
To understand the principle and feasibility of using hedging in practice, several examples should be considered:
1. The simplest and most well-known strategy for trading stock assets is “ Buy and Hold ”.
Is it possible to trade Forex without drawdowns and losses?
Anyone who has been trading on the Forex currency exchange for more than a few months knows that the main troubles for a trader are caused by drawdowns and withdrawals of the deposit .
It is drawdowns that spoil the mood, and complete loss of the deposit that forces you to start all over again.
Moreover, many simply cannot imagine their trading without these two events, not even imagining how easy it is to start trading without major losses.
Which not only cause depression, but also become the main reason for making new mistakes.
In fact, if you put aside force majeure circumstances, reducing losses to a minimum is quite simple, the main thing is to follow simple rules and moderate your appetites a little.
When to switch from demo account to real account
The career of most Forex traders begins the same way; almost everyone is confident in their competence and immediately starts from a real account.
But after the first deposit is lost, the beginner becomes more careful and moves on to trading on demo accounts .
So several months of trial and error pass and finally, successful transactions begin to appear, every day there are more and more of them, the deposit gradually increases.
Successful trading on a demo makes you want to quickly switch to a real account, because virtual earnings could turn into real profits.
In fact, the amount of profit for a month or other reporting period does not fully characterize your skills as a trader and is not always a guarantee against repeating mistakes.
When will Forex be banned?
The tightening of requirements for the provision of Forex trading services over the past few years has led many to uneasy thoughts.
This is not the first year that Russian traders have been wondering when Forex will be banned and in what form this will happen.
How will this affect this service sector and will it be possible to circumvent this ban using technological progress?
While the government's actions do not inspire optimism, decrees designed to protect gullible citizens are increasingly restricting the activities of brokers.
So, the future of trading in Russia:
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